ACC 305 Lecture Notes - Lecture 16: Deferral, Deferred Income, General Ledger

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orangegnat648

10 Mar 2019

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Document Summary

General ledger - the entire set of accounts for a company. After a company records its transactions, events, and arrangements in a general journal, it updates each account in the general ledger by posting the date, debit amounts and credit amounts from the journal entries. The trial balance lists all of the general ledger accounts and their balances. The trial balance is used to verify that the total debit balances equal the total credit balances. If the column totals are not equal, an error has been made. But even if the debit and credit columns balance, this does not ensure that the accounting information is error free. Adjusting entries must be recorded so that: All revenues and expenses are recognized in the appropriate period. All assets and liabilities have correct ending balances. Always affect both a permanent account and a temporary account. May be classified into four broad categories.

Related Questions

On a trial balance, if the debit and credit column totals are equal, then:

a. All transactions have been recorded correctly.

b. All entries from the journal have been posted to the ledger correctly.

c. All ledger account balances are correct.

d. The total debit entries and total credit entries are equal.

e. The balance sheet would be correct

chocolateserval968

PLEASE FOLLOW THE GUIDELINESâ

Posting Journal Entries to General Ledger Accounts

Journalize and post business transactions for the following account:

General Ledger

101 Cash in Bank
102 Accounts Receivable
120 Grooming Supplies
130 Office Furniture
140 Grooming Equipment
205 Accounts Payable
301 Rex s Capital
305 Rex s Withdrawals
402 Boarding Revenue
410 Grooming Revenue
505 Salary Expenses

January 2005

Jan 1	Rex invested $5,000 in the business, Memorandum 10.
Jan 3	Rex transferred furniture valued at $2,000 to the business, Memorandum 11.
Jan 10	Issued check No. 501 for $400 for grooming supplies.
Jan 15	Bought grooming equipment on account for $2000 from Pets Inc.; Invoice 201.
Jan 17	Paid Pets, Inc. $500; check No. 105.
Jan 20	Rex withdrew $1,000 cash from business; check No. 59.
Jan 29	Salary paid to employee: $300 via check No. 60.
Jan 30	Deposited $2,000 received from client for rendering service; Receipt Nos. 124-130

Guidelines:

In your working paper, open an account in the general ledger for each of these accounts.

Record the January transactions on page 1 of the general journal.

Post each journal entry to the appropriate account.

Prove the ledger account by preparing a trial balance.

Cash in Bank
Debit	Credit
$5,000.00


Debit	Credit






Debit	Credit






Debit	Credit






Debit	Credit






Debit	Credit





Rexâs Capital
Debit	Credit
	$5, 000.00





Debit	Credit






Debit	Credit






Debit	Credit






Debit	Credit






Debit	Credit

General Journal
Date	Description	Post. Ref.	Debit	Credit
20- Jan. 1	Cash	101	$5,000.00
	Rexâs Capital	301		$5,000.00

General Ledger

Account Name: Cash Account No.101

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit
20- Jan. 1		J1	$5,000.00		$5,000.00

Account Name: Account No.102

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Account No.120

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Account No.130

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Account No.140

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Account No.205

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Rexâs Capital Account No.301

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit
20-- Jan. 1		J1		5000		5000

Account Name: Account No.305

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Account No.402

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Account No.410

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Account Name: Account No.505

Date	Particulars	Post ref.	Debit	Credit	Balance
Date	Particulars	Post ref.	Debit	Credit	Debit	Credit

Trial Balance

Account Number	Account Name	Trial Balance
Account Number	Account Name	Debit	Credit

fuchsiamuskrat244

PLEASE ANSWER ALL OF THESE QUESTIONSâ